Industrial Bank Topped the Green Credit Ranking of Listed Banks

A number of environmental protection organizations, including Green Watershed and Friends Of Green China Tianjin, jointly held the “Forum on Green Finance to Boost Green Economy” on September 10, 2012, one day before the “2012 Summer Davos Forum” held in Tianjin. Representatives from the governmental agencies, non-governmental institutions and enterprises attending the forum held discussions on many industries relating to future real economy. This forum also released the report of “Green Credit Performance Ranking of Listed Chinese-funded Banks” (2008-2011)” (hereinafter referred to as the “Green Credit Ranking”) jointly participated by ten Chinese non-governmental environmental protection organizations including Green Watershed, Greenovation Hub, Friends Of Green China Tianjin, the Institute of Public and Environmental Affairs, Friends of Nature, China Development Brief of Green Earth Volunteers, Global Environmental Institute (GEI), the Research Institute of Hengduan Mountains, the Green Volunteer League of Chongqing, and Green Zhejiang. In the report, the green credit performances of listed Chinese-funded banks are evaluated in a comprehensive manner during recent four years, and Industrial Bank (IB) topped the overall ranking. The top five includes IB, Shanghai Pudong Development Bank (SPDB), Industrial and Commercial Bank of China (ICBC), China Merchants Bank (CMB) and China Construction Bank (CCB).

Taking the Chinese-funded banks (16 in total) listed before the end of 2011 as the targets of evaluation, the Green Credit Ranking measured and recorded their environmental performances based on ten indexes in accordance with the relevant Chinese environmental and commercial regulations and policies as well as relevant green credit policies of the regulatory authorities. These ten indexes include disclosure of environmental information, environmental policies, environmental measures, special department responsible for green credit, adoption of environmental guidelines of the international banking, retreating from loans to projects of “heavy pollution, high energy consumption and excess production capacity”, extension of loans to environmental protection or green industries, public opinion, internal environmental protection activities, and activities for building green credit (advocating) environment among craft brothers and customers.

In recent years, IB has adhered to the corporate governance philosophy of sustainable development, and performed its corporate social responsibilities through “performing reasonable social responsibility while bringing benefits to the stakeholders”, with a view to explore a sustainable business model in which a win-win result can be achieved between banks and the society. With the world leading risk control tool – the Equator Principles, IB has also released the policies to control environmental and social risks to improve its institutional system for controlling environmental and social risks and business process, thus establishing a management system for environmental and social risks gradually. Meanwhile, IB has also devoted itself to developing and innovating in sustainable financial products, lending vigorous support the area of green economy including energy conservation and emission reduction projects of conventional industries and strategic emerging industries. Moreover, the bank has also kept improving its professional service power in the field of green finance and helping customers to reduce or alleviate environmental and social risks in projects.

With continued innovation and bold attempts in the field of green finance, IB has become the forerunner of green finance businesses in China, advocating sustainable finance concept. While implementing the national policies on green credit, the bank has also improved its own market competitive strength and social influence.